This was announced by the head of the People's Bank of China Yi Gang at the sub-forum "Normalization of Monetary Policy" in the framework of the Boao Asian Forum 2018 on April 11. As Chinese President Xi Jinping stated these measures were taken to simplify enter the Chinese market, including the financial one. The events on the insurance market opening are included in six measures on financial exposure, which are planned to be implemented by the end of June.
Other measures include the following:
- The removal of restrictions on the share of stocks in foreign capital in banks and financial asset management companies, promoting the principle of the same attitude toward, both Chinese and foreign enterprises. Foreign banks will be allowed to simultaneously establish their branches and subsidiaries in China.
- The maximum limit on a foreign security portfolio for companies managing securities, funds, futures and insurance policies will increase to 51%, and in three years from now the restrictions will be removed.
- Remission of the claim that at least one broker company has a share capital among the shareholders of companies operating in the securities sector.
In order to gradually improve the mutual communication mechanism between mainland China and Hong Kong, as of May 1 the volume of daily quotas established for cross-selling will increase in four times, from 13 billion to 52 billion on the Shanghai and Shenzhen stock exchanges, and from 10.5 billion to 42 million on the Hong Kong stock exchange.